As property tax bills begin arriving in mailboxes, it’s important to understand how your new tax bill might be different from previous years, especially if you've recently purchased a home in Charleston County. Due to the Point of Sale Re-Assessment policy, recent buyers could see significant changes to their tax bills. 

Here’s what you need to know:

Point of Sale Re-assessment: What is it?

When you purchase a property in Charleston County, the sale is considered an assessable transfer of interest (ATI). That transfer triggers a re-assessment whereby the county reappraises the property value at or near the purchase price. If you purchased property this year, expect your property’s assessed value to jump to your purchase price.

For example, if the previous owner’s assessment was based on a value of $539,000, you may currently be benefiting from their lower assessment. But after the sale, the county will reassess your property at the purchase price, say $900,000, significantly increasing the property’s assessed value.

In some cases, this “point of sale re-assessment” may not get picked up until the following year, depending on when you closed on the purchase; so if that’s you . . . enjoy it while it lasts. 

How is your property tax calculated?

Charleston County uses a specific formula to calculate property taxes. Here’s the basic formula:

1. Appraised Value: The new appraised value, which is usually the purchase price after a sale.
2. Assessment Rate: Owner-occupied properties benefit from a 4% tax rate, while non-owner-occupied properties are taxed at a 6% rate.
3. Millage Rate: This is set by the county and local jurisdictions. 
4. Multiply your appraised value by your assessment rate, then multiply by the millage rate to get your base tax amount. Finally add/subtract the service fees and applicable tax credits available to arrive at your total tax amount. 

For a detailed example of how the county calculates property taxes, refer to Charleston County’s Sample Property TaxCalculation.

Owner-occupied Tax Exemption: How to qualify

The default tax rate is 6% so the County will automatically move you to that higher rate when the sale/ATI triggers a re-assessment. The owner-occupied property tax exemption provides significant savings on your tax bill by applying the rate of 4% along with other credits. However, you must apply and qualifying for the exemption requires an extensive documentation. If you plan to occupy the property as your primary residence, you should apply for this exemption as soon as possible. Here’s the application form: Charleston CountyOwner-Occupied Property Tax Exemption Application.

*You only need to apply once. The 4% owner-occupied exemption will remain in place until you sell the property or move to a new primary residence. 

Estimating Your Property Tax Bill

Want to get a better idea of what your next tax bill will look like? Charleston County offers a Property Tax Estimator tool that allows you to calculate an estimate based on your property’s appraised value and the assessment rate. You can find the estimator here: Charleston County Property Tax Estimator.

Future Re-assessments: What to expect

Even if you don’t plan to sell your home soon, all property owners in Charleston County will be re-assessed during the next county-wide reassessment in 2025. After that, your property’s value will remain fairly stable until the next 5-year reassessment in 2030.

Final Thoughts

Receiving your property tax bill can feel overwhelming, especially after a recent purchase. Even for a seasoned pro, they can be rather confusing. However, understanding how Charleston County’s Point of Sale Re-Assessment works and what tax rates apply to your property will help you plan for these changes. If you're a new homeowner or planning to buy, make sure you’re prepared for next year’s tax bill.